Morgan Stanley's Wealth Management Adds $59 Billion In Net New Assets, Total Client Assets Grow To $6.5 Trillion (UPDATED)

Editor’s Note: The Total Client Assets numbers has been updated

Morgan Stanley MS reported a second-quarter 2025 earnings of $2.13, up from $1.82 a year ago and beating the consensus of $2.02. Net earnings increased to $3.54 billion from $3.08 billion.

The U.S. bank reported revenue of $16.79 billion, up 12% year over year, beating the consensus of $16.11 billion.

Morgan Stanley's provision for credit losses jumped to $196 million, primarily driven by growth in the corporate loan portfolio and

secured lending facilities, and the impact of a moderately weaker macroeconomic outlook.

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The firm's expense efficiency ratio was 71% compared to 72% a year ago.

Morgan Stanley's second-quarter Return on Tangible Common Equity was 18.2%, compared to 17.5% a year ago.

Institutional Securities reported net revenues of $7.6 billion, propelled by

Markets businesses on higher client activity, with notable strength in Equity.

Investment Management results reflect net revenues of $1.6 billion, primarily driven by asset management fees on higher average assets under management (AUM) of $1.71 trillion (up 13%). The quarter included positive long-term net flows of $11 billion.

Wealth management delivered net revenues of $7.76 billion on higher asset management revenues, compared to $6.79 billion a year ago. Total client assets grey 8% yer-over-year to $6.49 Trillion.

The business demonstrated continued strength with net new assets of $59 billion and fee-based asset flows of $43 billion for the quarter.

Equity net revenues increased 23% to $3.72 billion, reflecting increases from a year ago across business lines and regions on higher client activity, with robust results in prime brokerage.

Fixed Income net revenues increased 9% from a year ago to $2.18 billion, primarily driven by higher results in macro products and higher client activity in a more volatile market environment. Lower results in commodities partially offset the increase.

On Wednesday, Chairman and Chief Executive Officer Ted Pick said, "Morgan Stanley delivered another strong quarter. Six sequential quarters of consistent earnings…reflect higher levels of performance in different market environments. Institutional Securities saw strength and balance across businesses and geographies."

Price Action: MS stock is down 1.38% at $139.64 during the premarket session at the last check Wednesday.

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